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Reorganizing leaves 250 denim plant workers unemployed
23 Jan '08
1 min read
The denim manufacturing plant of Mount Vernon Mills, the largest industry of Chattooga Country, Georgia, announced that it is reorganizing the shifts. As a result of this move, around 250 workers will be out of job. Currently, the plant engages 1600 workers.
The reason behind this step is that there is a steady increase in the manufacturing costs. The price of oil has increased, which has affected the other sectors, as well.
Even the cost of cotton has increased nearly 10 cents per pound. Company's monthly consumption of cotton is around 10 million pounds. If the cost is not cut, it will become extremely difficult for Vernon Mills to compete in the global market.
The mill is planning to switch to two 12-hour shifts, instead of three 8-hour shifts. So the employees will work three or four hours a week. Employees who lose the job at the denim plant will be considered for posts at finishing plant.
The officials of Mount Vernon Mill said that they will do whatever they can to help the employees to find a job elsewhere, if needed.
The reason behind this step is that there is a steady increase in the manufacturing costs. The price of oil has increased, which has affected the other sectors, as well.
Even the cost of cotton has increased nearly 10 cents per pound. Company's monthly consumption of cotton is around 10 million pounds. If the cost is not cut, it will become extremely difficult for Vernon Mills to compete in the global market.
The mill is planning to switch to two 12-hour shifts, instead of three 8-hour shifts. So the employees will work three or four hours a week. Employees who lose the job at the denim plant will be considered for posts at finishing plant.
The officials of Mount Vernon Mill said that they will do whatever they can to help the employees to find a job elsewhere, if needed.
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